Debt consolidation agencies can provide you with a number of tools to get out of debt.
This includes trying to negotiate your debts down.
Not all agencies will provide this however.
This is something that is done in cases where they believe that they can get fees and penalties removed from the debt.
Finding a consolidation agency that will negotiate for you is not easy, but there are many benefits for going through the work of looking.
Banks and credit unions specialize in lending.
They may or may not offer negotiation services.
Investigate the different branches in your area to find out if they offer negotiation.
When a creditor is in negotiations with a bank, there is a certain amount of confidence that the creditor will get paid a portion, because they know the bank will consolidate the remaining balance.
This can make the creditor far more willing to negotiate, than if they were dealing with a settlement company that may or may not be able to pay the debt.
Just remember, not all banks or credit unions will offer this service, but it is worth your while to investigate.
There are other settlement groups that will negotiate and settle the debt, then provide you with a debt consolidation loan to pay off the creditors in full.
Check to make sure that they are legitimate because a bank or other financial institution may not back them.
Usually you can find reviews online, or through the Better Business Bureau for their local area.
While debt consolidation is a separate service from negotiation, most agencies recognize the need for both.
A good agency will provide both.
You should understand that there may be fees attached to any negotiation process.
Do your homework make sure that the fees are worth paying, and how much they would add to your total debt.
You may find that negotiation is not worth it, but a good agency will do everything they can to get you free from debt.